Wednesday, September 14, 2011

Rahm's Chicago Entices Rubenstein's JMC Steel

Beachwood-based JMC Steel Group reportedly is considering moving its 50-job headquarters to Chicago, thanks to nearly $4 million in tax incentives.

Rahm Emanuel is the Mayor of Chicago

Formerly called John Maneely Steel, JMC was the creation of the Carlyle Group private equity company.

Carlyle co-founder David Rubenstein dined with Rahm at the Blue Duck Tavern in Washington, D.C. while Emanuel was Obama's Chief of Staff.

JMC already has received $2 million in assistance offers from the state of Illinois, and it has requested another $1.2 million from the city, the Chicago Tribune reported. A city board approved the additional incentives Tuesday, but Chicago's city council still must approve the deal.

In addition to those two sets of tax breaks, the city would forgive an early $600,000 grant of tax funds given to JMC subsidiary Atlas Tube in 2003. The subsidiary failed to meet employment requirements on that project and would have to repay some of those funds if the city did not agree to the new awards.

The Carlyle Group failed to meet its Texas employment promises for Vought Aircraft Industries. Fortunately for Carlyle, Governor Rick Perry renegotiated the deals in secret, saving Rubenstein and company millions.

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